Certified Government Financial Manager (CGFM) Practice Exam 2025 - Free CGFM Practice Questions and Study Guide

The mission of the Governmental Accounting Standards Board (GASB) is best described by the goal to improve state and local governmental financial reporting. This involves creating standards that enhance the clarity, consistency, and transparency of financial reporting among state and local governments. GASB aims to ensure that the financial information provided by these entities is useful and relevant for decision-making by government officials, investors, and the public.

By setting the standards for accounting and financial reporting for the governmental sector, GASB plays a critical role in promoting accountability and improving the quality of financial statements, which ultimately supports better governance and informed decision-making in the public sector.

The other options relate to functions that are not within GASB's scope. For instance, setting auditing standards for federal entities is under the purview of the Federal Accounting Standards Advisory Board (FASAB), not GASB. Providing international public sector accounting standards relates to the International Public Sector Accounting Standards Board (IPSASB). Lastly, regulating accounting practices across the United States is a broader task typically associated with the Financial Accounting Standards Board (FASB) and various regulatory bodies rather than the focused mission of GASB on state and local governments.